Bankruptcies filings are troubling the Aloha state, and a new report suggests growing credit card debt and foreclosures could be the main culprits.
While the numbers of filings fell slightly in October, the overall numbers are troubling to some experts, as many were personal bankruptcies.
“Many clients are trying to save their homes from foreclosure,” Honolulu-based bankruptcy attorney Ed Magauran told the Honolulu Star-Advertiser. “They are behind on their mortgage payments because they’ve already tapped out their credit cards, borrowed from family members and dipped into their 401(k) retirement plans.”
The total number of bankruptcies in Hawaii in October was 297, with Chapter 7 cases accounting for 223 filings, the Star-Advertiser reports. Chapter 13 filings, which allow individuals to save income to pay creditors, made up most of the remainder.
Bankruptcies in Hawaii hit their lowest total since February in October, according to the news source. Overall bankruptcies rose on a year-to-year basis by 8.4 percent.
Hawaii has seen an average of 332 filings per month this year, peaking with 391 cases in April – the average was 80 in 2006.